Morgan Stanley Lowers PT on Synopsys (SNPS), Maintains an Overweight Rating

Core Insights - Synopsys, Inc. (NASDAQ:SNPS) is considered one of the best stocks on NASDAQ with significant upside potential despite recent challenges [1] - Morgan Stanley has lowered its price target for Synopsys from $715 to $510 while maintaining an Overweight rating [1][2] Financial Performance - For fiscal Q3 2025, Synopsys reported revenue of $1.74 billion, representing a year-over-year increase of 14.03%, but fell short of expectations by $27.28 million [2] - The earnings per share (EPS) was reported at $3.39, which was $0.36 below analyst expectations [2] Revenue Concerns - A surprising miss in Design IP revenue during Q3 raised concerns about the company's growth prospects for fiscal 2026 [3] - Analysts expect the market to lower earnings expectations for FY26 due to ongoing issues with Design IP [3] Company Overview - Synopsys provides engineering solutions for designing and testing integrated circuits and systems, including electronic design automation software, silicon design tools, and intellectual property products [4]